Answered

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

a. MD&A is not considered part of Required Supplementary Information (RSI).
b. MD&A takes the place of footnotes.
c. MD&A should present an analysis of significant variations between the original and final budget.
d. All of the above choices are true.

Answer :

Answer:

The correct answer is letter "C": MD&A should present an analysis of significant variations between the original and final budget.

Explanation:

The Management Discussion And Analysis (MD&A) portion of an annual report for a company discusses certain elements of the success of the business. Although all parts of an annual report provide valuable details and the MD&A is important, it explains to shareholders why a company is stable or why it is not. The MD&A interprets the numbers in the financial statements, determines the organizational strategies and style of management which have led the organization to its current state.

In such a case, the MD&A reflects the variations between the company's budget and the actual performance it had.

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